The government is considering taking action against the promoters of approximately 73,000 companies that are suspected of fraudulent transactions after 2016 demonetisation. Economic Times has reported.
“We have identified 73,000 companies in which Rs 24,000 crore was deposited after demonetisation. The investigation is being undertaken by various agencies,” said PP Chaudhary, Minister of State for Corporate Affairs.
It was reported in May 2018 that the Corporate Affairs Ministry had identified around 2.25 lakh companies which did not submit regulatory filings for 2015-16 and 2016-17. They were alleged to function as ‘shell’ companies that are used to hold and transfer unaccounted wealth.
In order to fast-track the investigation into mismanagement of companies, Chaudhary mentioned that the government was considering arming Serious Fraud Investigation Office (SFIO) with experts to tackle high-profile cases.
SFIO is the premier corporate fraud investigation agency in India. It works under the supervision of the Ministry of Corporate Affairs.
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